BMO public offering to raise at least $2.7 billion for U.S. bank acquisition
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Hey there, time traveller!
This article was published 22/03/2022 (1620 days ago), so information in it may no longer be current.
TORONTO – Bank of Montreal is expecting to generate at least $2.7 billion in gross proceeds from a public offering to help fund the US$16.3-billion acquisition of Bank of the West in the United States.
The Toronto-based bank says it will issue 18.1 million shares at a price of $149 per common share, below Tuesday’s closing price of $153.72.
The offering is being underwritten on a bought-deal basis by a syndicate of underwriters led by BMO Capital Markets.
BMO has granted the underwriters an option to purchase up to an additional 2.7 million shares for $402 million, exercisable at any time up to 30 days after closing of the offering, expected March 29.
The offering is not conditional on the closing of the acquisition and shares sold will remain outstanding whether or not the deal is completed.
The bank says it expects to fund the acquisition primarily with excess capital.
This report by The Canadian Press was first published March 22, 2022.
Companies in this story: (TSX:BMO)